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Federal Contracting Answer Book, 3rd Edition by Terrence M. O'Connor

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CHAPTER

10

THE GOVERNMENT’S PRICE EVALUATION

Price analysis is the process whereby the government examines and evaluates an offeror’s proposed price to determine if it is fair and reasonable without evaluating the separate cost elements. The government conducts several activities in an effort to ready itself for price negotiations with an offeror. Following this preliminary work, the government evaluates an offeror’s proposal from a price perspective.

In conducting the price evaluation, the government keeps in mind that certain changes can result in lower overall prices. For example, provided they are acceptable to the government, changes in terms ...

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